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Preparation of a statement of facts and grounds of appeal

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Athulya

student

21 Points Posted on 05 March 2015

Dear Experts,

My client is a Pvt. Ltd Company. is engaged as a dealer in induction cookware.The IT Dept. call for a scrutiny assessment of I.T Return filed for the A.Y 2011-12. The issue is "contravening to the provisions of Sec. 269SS (Rs.33lacs aprox.) and 269T (Rs.97lacs aprox.) of the I.T Act 1961. The penalty is levied under Sec. 271D and 271E respectively". In revert to the notice issued by I.T Dept, we submit a reply to avail the benefits of Sec. 273B by showing the reasonable cause as "financial crisis". But The I.T Dept. rejected our request to waive the penalty. We would like to file an appeal with Addl. Commissioner of I.T. Please suggest any case laws that justify our right to get the benefits under Sec.273B.

Thank you.

Replies (1)

ARUN KUMAR V

201 Points Posted on 13 March 2015

At first, First appeal is before CIT (Appeals) u/s.246A(1)(n) (instead of Addl. CIT.)

Second, 271D/271E order of penalty could be made by Joint Commisioner only.

Thirdly go through the following case laws

a. CIT Vs Sunil Kumar Goel (2009) 315 ITR 163 P&H, 271D/271E no pelaty for loan between sister concerns, which was truly reflected in books.

b. CIT Vs. Manoj Lal Wani (2003) 260 ITR 590 (Raj), assesse took loan of 2.50 lakhs and immediately deposited in bank for the urgent demand of the assesse's business.

c. CIT Vs Parmanan (2004) 266 ITR 255 (Del), AO should look into subsequant events in judging whether cash credits/cash loan is bonafide transaction for the certain advantage of the business.